25th Mar 2020 09:52
(Alliance News) - DFS Furniture PLC, which has closed stores due to government imposed lockdowns to fight Covid-19, on Wednesday introduced cost-cutting measures to cushion the blow.
The furniture retailer cancelled its interim dividend of 3.7 pence per share, saving it GBP8 million in June, it said.
It has also pulled the opening of six new showrooms scheduled for 2021 and "significantly" cut marketing spend.
DFS will freeze all recruitment and reduce the usage of consultants and contractors. The company's "senior leaders" will also take pay cuts and defer annual salary reviews.
As of Tuesday, the company had available cash resources of GBP70 million and committed bank facilities of GBP250 million.
"Until there is greater clarity about the full impact of the pandemic, we are unable to provide further guidance on our revenues and profits, particularly on the financial reporting period to June. The board's priority is to protect our people and our customers, to conserve cash and to manage the group through the coronavirus pandemic, until further certainty is gained," DFS said.
DFS shares were 0.2% lower at 113.54p each in London on Wednesday morning.
By Eric Cunha; [email protected]
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